The ruling prank the recovery plan and started working under the Personal Bankruptcy Act

The governing led the adoption of the necessary legislative measures for the second payment under the Recovery and Sustainability Plan and today they adopted at first reading three bills on personal bankruptcy – the BSP, « We continue the change – democratic Bulgaria » (PP – DB) and the government. They are yet to be combined into a common text, after which parliament will decide what time to give for proposals between the two readings. However, it is expected that the texts will be delayed a lot, with such a people saying today that they will want the longest time for editions of 28 days.

The measures aim to ensure the protection of bona fide debtors who, for their independent reasons, cannot pay their debts, while protecting the creditors’ fair demands.

The three proposals differ mainly in the conditions under which the bankruptcy is declared: the government’s proposal lies that a personal bankruptcy may declare a debtor who cannot fulfill his monetary obligations for a total value of at least 10 minimum wages for a period of more than 6 months. The BSP proposes that it is an insolvent one who cannot pay liabilities worth 5 minimum wages for a period of at least 90 days. PP – DB, on the other hand, suggests that people who cannot pay off liabilities worth 24 minimum salaries for at least 12 months.

BSP’s idea

According to the BSP draft law, the proceedings for the declaration of personal bankruptcy shall be initiated at the request of the debtor, and the court, together with the appointment of a manager of the property, entered in the register an invitation to the creditors for accession within one month. In accordance with the income, property and obligations of the debtor, the possibility of bankruptcy with an approved plan for repayment, bankruptcy with the redemption of the property and the bankruptcy in the absence of income and property is provided.

In addition, a common electronic register should be created at the Registry Agency, which includes information about the individuals, the actions of the appointed manager and the acts of the court, which is updated periodically.

The obligations of the bona fide debtor shall be extinguished with the expiration of 18 months from the entry into force of the court’s decision to approve the repayment plan, and in the absence of income and property the repayment period is one year from the declaration of bankruptcy.

The proposed PP – DB

In the Bill of the Association, it is proposed to define property, which will ensure that the debtor will be able to cover his life needs. It is envisaged that the court will be able to establish facts, to collect evidence, to appoint an expert and to impose security measures and restrictions on the debtor’s actions.

The proceedings are initiated at the request of the debtor. To this end, he must provide evidence of employment, the circumstances of insolvency and good faith and data on his property, and the debtor also proposes a plan for repayment of the obligations.

After announcing the insolvency, the court allows collateral and the debtor cannot conclude new transactions of management and disposal of his property, as well as make payments without the permission of the receiver. Within the proceedings, the interests of the creditors and the debtor are exercised and controlled by a trustee, and the functions can also be assigned to a state enforcement agent. The receiver is paid to a fee for specific actions, and in case of redeeming of property, his remuneration is 2% of the value of the redeemed property.

The government’s bill

The proposal of the Council of Ministers provides for the provision of the debtor’s life needs, for this purpose determined by non -sequestrant property, which is not included in the bankruptcy estate and provides for maintenance that serves to meet the life needs of the debtor and the members of his family.

Provides an opportunity for voluntary implementation by approving a repayment plan before proceeding to redeem the property. Where no plan has been proposed or the proposed plan has not been accepted or approved, the court declares the debtor bankrupt, issues a general foreclosure and attachment to the debtor’s property, and orders the start of the redeeming of the property.

The obligations of the bona fide insolvent debtor shall be extinguished with the expiration of a 3-year period from the entry into force of the court decision to approve the repayment plan when at least partly the creditors are satisfied. In the absence of property, it is proposed that the repayment should occur within five years. It is also proposed to publish information on bankruptcy proceedings in a bankruptcy register with the Ministry of Justice.

« The state is so destabilized »

With these words today, the GERB leader has announced that the government will submit all the legislative measures that are necessary for the second payment under the PV:

The party leader, however, suggested that the introduction of these commitments into the Cabinet of Kiril Petkov is a « betrayal ».

Later, the co-chairman of « Continuing the Change » Kiril Petkov said that the movement on the PV was due to the pressure from the coalition, as at the end of last week different representatives of the unification stated that in June, after the convergence report on the will be received, the PP-DT was not taken to the no. the amount of BGN 1.2 billion.